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TMI Blog2022 (7) TMI 1484X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned final assessment order dated 23/10/2018, passed by the Assessing Officer u/s 143(3) r/w section 144C(5) of the Income Tax Act, 1961 ( the Act ) pursuant to the directions dated 26/09/2018, issued by the Dispute Resolution Panel (DRP) 3, Mumbai, for the assessment year 2014 15. 2. In the present appeal, the assessee is aggrieved against the adjustment of Rs.5,23,79,628, in respect of specified domestic transactions entered into by the assessee. 2. When this appeal came up for hearing, the learned Representative appearing for the parties fairly agreed that the aforesaid issue, arising in the present appeal, is cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly, we allow the additional ground of appeal and hold that the impugned transfer pricing adjustment of 2,196,447,328/- made by the learned assessing officer is not sustainable. 018. However we are also conscious that the provisions of Section 40A (2) of the act still exists in the statute book. The decision of the Texport overseas Ltd of the coordinate bench, which was partly challenged by the revenue before the honourable High Court, also held so. In that case, the coordinate bench held that the adjustment on account of examination of the arm's-length price of the specified domestic transactions is not valid because of deletion of the provisions of Section 92BA (1) of the act with effect from 1/4/2017 without any saving clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 40A (2) (b) of the act. No such facts exist in the case. Contrary to that, in the present case the assessee, itself has stated in its TP study report as well as Report of Accountant in 3CEB stated that these transactions are covered by the provisions of Section 40 (A) (2) of the act. Even otherwise, it is not the fact that revenue is given a second chance. In the present case earlier the impression of the revenue prior to the decision of the coordinate bench and of the honourable Karnataka High Court, was that specified domestic transaction l.e. transactions that are covered by the provisions of Section 40 A (2) are required to be tested in accordance with the provisions of chapter X of the act. However when the judicial precedents sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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